Ethereum has done tremendously well in the last 48 hours. The Ethereum price shot up an incredible 95 percent in 48 hours. On Monday, Ethereum dipped at $132 and today’s intraday high was $258. That is amazing.
Now Ethereum is doing exactly what it has to do in order to sustain its bull market. First, it respected the $125 level, which we identified as the breakdown point over the weekend and documented it in Why 125 USD Is Critical To Ethereum’s Bull Market. Second, Ethereum crossed $220 which is the breakout level.
The price chart makes our point. The support and resistance lines on the chart coincide with the two price levels we just mentioned: support kicks in at $125 and resistance sits at $220. That is what the falling trend channel looks like.
The fact that Ethereum broke above $220 today is a very encouraging sign. It is the first sign of a breakout.
However, the point now is that this breakout must be confirmed. That means Ethereum must trades for at least 3 consecutive days above $220. If that is the case, we will know for sure that the downtrend has stopped, and that a new uptrend has started. That would bring Ethereum close to its June highs at $400.